In the Bombadier Company, Division A has a product that can be sold either to outside customers or to Division B. Information about these divisions is given below: The company uses the opportunity cost approach to transfer pricing. What is the minimum transfer price in Case 2?
A) $58
B) $74
C) $68
D) $75

Question

In the Bombadier Company, Division A has a product that can be sold either to outside customers or to Division B. Information about these divisions is given below:  The company uses the opportunity cost approach to transfer pricing. What is the minimum transfer price in Case 2?
A) $58 
B) $74 
C) $68 
D) $75

Quizplus · Accepted Answer

The Answer of In the Bombadier Company, Division A has a product that can be sold either to outside customers or to Division B. Information about these divisions is given below:  The company uses the opportunity cost approach to transfer pricing. What is the minimum transfer price in Case 2?
A) $58 
B) $74 
C) $68 
D) $75

In the Bombadier Company, Division a Has a Product That